Group 1: Ares Capital - Ares Capital has a forward dividend yield of 8.72% and trades at 10 times forward earnings, making it an attractive investment [3] - It is the largest publicly traded business development company (BDC) and is well-positioned to continue paying high dividends due to increased demand for borrowing among middle-market companies [4] Group 2: Enbridge - Enbridge offers a forward dividend yield of 6.44% and has increased its dividend for 30 consecutive years, with projected distributable cash flow growth of around 3% through 2026 and 5% in subsequent years [5] - The company is a leading player in the midstream energy industry and has become the largest natural gas utility in North America through recent acquisitions [6] Group 3: Enterprise Products Partners - Enterprise Products Partners provides a forward yield of 6.76% and has a history of 26 consecutive years of distribution increases [7] - The company is expected to generate solid cash flow to support its distribution, regardless of market conditions [8] Group 4: Honda Motor - Honda Motor has a dividend yield of 4.94% and a forward earnings multiple of 6.75, indicating it is undervalued [9] - The company is experiencing solid year-over-year sales growth and is poised to enhance its competitiveness in the electric vehicle market through a pending acquisition of Nissan [10] Group 5: Pfizer - Pfizer offers a forward dividend yield of 6.46% and prioritizes maintaining and growing its dividend [11] - Despite challenges such as declining COVID-19 product sales and a looming patent cliff, Pfizer has multiple newer products expected to drive growth, trading below 9 times forward earnings [12]
My 5 Favorite Ultra-High-Yield Dividend Stocks to Buy for 2025